Analysis and Opinion »

EUR/USD back below 1.14 after no Greek deal

FXTM UUIIFXBR
Share on StockTwits
Published on
www.forextime.com

USD/JPY did not do much in Asia with interest low and flows few and far between. Whatever action the market did see was on the back of Nikkei moves. The Nikkei traded weak early, gapping down before a slow grind up. USDJPY fell from 118.55 to 118.23 on initial Nikkei weakness before recovering along with the index to 118.64. Bids remain from well ahead of 118.00 and offers from well ahead of 119.00. Stops are eyed sub-118.10, 61.8% Fibo retracement of the move up from 116.64-120.48 February 2-11, and 118.00 and topside above 119.00. Jobbing was the name of the game in EURJPY too which initially fell to 133.96 before bouncing to 134.78 on almost no volume. Despite the push up, sentiment remains bearish with the EU and Greece still seen far from any deal. GBPJPY rallied in sympathy from 181.52 to 182.37, effectively bouncing off its gradually ascending 200-HMA at 181.68. AUDJPY bounced hard from 91.61 to 92.55 and NZDJPY from 88.44 to 89.16. The former is still holding below multiple tops just above 93.00. The latter looks to test resistance at its 100-DMA at 89.46 soon.

EUR/USD opened in Asia at 1.1355 after selling off when the EU and Greece could not come to an agreement. Asia saw it down more to 1.1322 before bids returned, perhaps encouraged by comments from Greek FinMin Varoufakis that he could agree to a draft plan drawn up by EU Commissioner Moscovici that would extend the loan agreement. EURJPY jobber buyer helped EURUSD recover later to 1.1364. With the US holiday yesterday, not all have had a chance to fully react to the latest turn of Greek-related events, and fresh EUR downside may be seen as worst-case scenarios including Grexit are priced in. Support remains ahead of 1.1250.

GBP/USD saw a slow grind up from 1.5354 to 1.5381, attempting to make tracks away from yesterday’s 1.5339 low. EURGBP see-sawed between 0.7375-92 and ready to trade another leg down.

USD/CHF see-sawed between 0.9315-38. EURCHF was in a holding pattern between 1.0561-84 and players still wary of SNB action.

AUD/USD opened in Asia at 0.7778 and dipped to 0.7754 before less dovish-than-expected RBA minutes which threw doubt on another OCR cut in March led to a rally to 0.7809 on short-covering. Offers returned above 0.7800 but more short-covering could be in store when London and New York return.

The post EUR/USD back below 1.14 after no Greek deal appeared first on Forex Circles.

Share on StockTwits